Job Evaluation Two Point-Factor Methods by sfh41483

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									          Job Evaluation
     Two Point-Factor Methods
   Factor Evaluation                Hay Method
         System
Developed in 1977 by the     Dates back to the early
Office of Personnel          50's and is one of the most
Management for non-          popular methods in use
supervisory general          today. It is particularly
schedule employees. It       popular for evaluating
incorporates many of         executive, managerial, and
    the characteristics of   professional positions as
the Lott, Benge, and         well as nonexempt clerical,
NEMA methods.                blue collar, and technical
                             jobs.               Lawrence Wagoner
  Universal Factors
Four Popular Methods
BASS                       NMTA
Skill                      Skill
(4/0)*                     (3/15)
Working Condition          Effort
(3/0)                      (2/10)
Responsibility             Responsibility
(1/0)                      (4/20)
                           Job Conditions
                           (2/10)
     * (SUBFACTORS/DEGREES OR LEVELS)

                                        Lawrence Wagoner
        Universal Factors
      Four Popular Methods
Hay and Purves     Factor Evaluation System
Know How          Knowledge      Personal Contact
(3/15)            (2/9)          Purpose of Contact
Problem Solving   Supv Control Physical Demands
(2/13)            (3/5)          Work Environment
Accountability    Guidelines
(3/15)            (2/5)
                  Complexity
                  (3/6)
                  Scope & Effect
                  (2/6)                   Lawrence Wagoner
     Combining Point-Factor
 and Factor-Comparison Methods

A critical check of the
results of a POINT-
FACTOR job evaluation
involves the use of
FACTOR COMPARISON.
It is used to be sure that
the factor points assigned
to each job makes sense
relative to a factor
comparison process.

                             Lawrence Wagoner
Job Evaluation Committee

Essential to the
success of all
job evaluation
processes is the
presence of
expert judgment.

                     Lawrence Wagoner
 Job Evaluation Committee

Expert judgment is typically shaped
by the level of knowledge shared by
the evaluators of the work
environment....Their understanding
            of the nature of the work being
               performed, and....Their capacity
                  to process information
                     and data and make sound
                     judgments.
                                         Lawrence Wagoner
Job Evaluation Committee

The quality of the output of any job
evaluation process using point
scored compensation factors
relates directly
to the quality of
decisions made
by those doing
the ratings, and....
                                       Lawrence Wagoner
Job Evaluation Committee

   It is reasonable to assume that given
    the complex nature of work
    environments, accuracy in job
    evaluation requires the knowledge and
    skill of more than one individual,
    and....

   The logical consequence is the job
    evaluation committee.
                                    Lawrence Wagoner
Job Evaluation Committee

   A job evaluation committee may
    consist of one to three permanent
    members (at least one from the comp
    department) and rotating members
    representing the unit(s) whose jobs
    are being evaluated.



                                  Lawrence Wagoner
Roles Of The Committee


    Rank And Rate Jobs

    Select A Job Evaluation
        Methodology


    Choose Benchmark Jobs


                               Lawrence Wagoner
             Role Of The
            Compensation
             Department
   Provide Committee Representation


   Provide Committee With Staff Specialists


   Identify Benchmark Jobs


   Provide Training For Committee Members

                                        Lawrence Wagoner
   Factor Evaluation
        System

The FES differs from the other point-
factor methods in that it contains
three stages of descriptive data not
simply a defined set of universal
compensable factors, subfactors,
and degrees.
The three stages are:

                                 Lawrence Wagoner
    Factor Evaluation System

   Primary Standards (9)

   Factor-level Descriptions For The Series
    (60+)

   Benchmark Jobs That Cover The Full
    Range Of Pay For The Jobs In Each
    Occupation Or Series.



                                         Lawrence Wagoner
    FES Factor Description
            Table
FACTOR             POINTS    % TOTAL
  LEVELS
Knowledge          50-1850   41.3                 9
Supv Control       25-650    14.5                 5
Guidelines         25-650    14.5                 5
Complexity         25-450    10.0                 6
Scope/effect       25-450    10.0                 6
Pers Contact       10-110     2.5                 4
Purp Of Contact    20-220     4.9                 4
Phys Demand         5-50      1.1                 3
Work Environment    5-50      1.1                 3
  Total Points      4480
                                       Lawrence Wagoner
              FES Exercise
   The FES process is described in detail in the
    text on pages 257 through 277.

   Additionally, a job description for a lead
    programmer taken from chapter 7 has been
    evaluated on pages 271 through 274 using the
    FES process and the results have been
    summarized on a "factor evaluation system
    position evaluation statement" appearing on
    page 276.
                                           Lawrence Wagoner
       FES Quality Check
   There is a direct relationship between the selected
    level of the knowledge factor and levels selected
    of all other factors.

   The knowledge or skill requirements of a job drive
    the evaluation rating, while other compensable
    factors provide additional information to "fine
    tune" the final rating.

   Review figure 9-5 "FES knowledge level
    conventions" for further explanation or
    description of this point.
                                                Lawrence Wagoner
      Sore Thumbing
Reviewing ratings using
some kind of spreadsheet
layout assists in
identifying factor ratings
that don't make sense.
This analysis is often
called "sore thumbing"
because an inappropriate
rating stands out like a
sore thumb.
                             Lawrence Wagoner
  Hay Guide Chart-Profile
         Method
The Hay Guide                     Know-How
chart-profile           Practical procedures,
method uses three        specialized knowledge, And
universal factors,       scientific discipline.
eight subfactors,        (8 levels)
and forty-three         Managerial (4 levels)
degrees and levels      Human relations (3 levels)
to evaluate jobs.
                        Plus 3 degree choices per
They are as
                         grid.
follows:
                                             Lawrence Wagoner
     Hay Guide Chart-Profile
            Method
    Problem-Solving           Accountability

                            Freedom to act
   Thinking
                             (7 levels)
    environment
                            Job impact on end
    (8 levels)
                             results (4 levels)
   Thinking challenge
                            Magnitude
    (5 levels)               (4 levels)
   Plus 2 degree           Plus 3 degrees per
    choices per grid         grid.
                                          Lawrence Wagoner
         Hay Method
   The descriptions that form the rows
    and the columns of the guide charts
    provide a measure of the level of
    difficulty, or importance, of each
    factor.

   The KH and AC guide charts provide
    actual scores. The PS guide chart
    provides a percentage that identifies
    the amount of KH used in solving
    problems.
                                    Lawrence Wagoner
            Hay Method
The Guide Charts Have Both Standardized
And Customized Features:
   The geometric scales use the same values with
    each step, reflecting the 15% perceptible
    difference in values theory discussed in chapter
    six.
   The number of rows and columns of each guide
    chart can be altered to fit the character and size of
    the client.

                                                 Lawrence Wagoner
        Hay Method
The evaluation
process generally
begins with the
highest valued
compensable factor
and proceeds in
order to the lowest
weighted factor.
                      Lawrence Wagoner
            Hay Method
                  KNOW-HOW
   Rows describe depth and breadth of job
    knowledge required to perform job
    assignments.
   Columns describe management breadth
    relative to such requirements as planning,
    organizing, reviewing, and control.
   Within each column there is a third element
    that measures human relations skill.
                                         Lawrence Wagoner
          Hay Method
             PROBLEM-SOLVING
   Rows identify levels of thinking.
   Columns identify thinking challenge.
    When the most appropriate grid and
    corresponding percentage has been
    identified, a point value is determined by
    multiplying the selected PS% (x) the
    previously determined KH points.

                                         Lawrence Wagoner
          Hay Method
             ACCOUNTABILITY

   Rows measure freedom to act
   Columns measure the magnitude of
    the impact of the job on end results
   Inside each column is a third element
    that measures the job impact on end
    results (4 per column)
                                     Lawrence Wagoner
    Hay Method Example
   The same lead-programmer analyst job
    evaluated earlier in this chapter using the
    FES method is re-evaluated in pages 282-
    294 using the hay method.

   Figure 9-10 (pg 284) is a ”Hay Position
    Evaluation Statement" that contains the
    evaluation scores for the lead-programmer
    analyst in accordance with the hay guide
    chart-profile method.
                                          Lawrence Wagoner
        Hay Method
Quality Checks And Patterns
                  PROFILING

   KH and PS are closely linked in the guide
    charts and they tend to parallel each other
    with respect to their alpha numeric locator
    codes. As KH requirements increase for a
    job PS enjoys a concomitant growth.



                                          Lawrence Wagoner
        Hay Method
Quality Checks And Patterns
                 PROFILING
   PS and AC also have a relationship
    that provides information about the
    general nature of jobs that when
    examined either validates the
    evaluation or challenges the results.


                                     Lawrence Wagoner
        Hay Method
Quality Checks And Patterns
                 PROFILING
   Jobs higher in PS points than AC
    points are typically staff and
    administrative in nature, and....
   Jobs higher in AC points than PS
    points are typically action or line
    jobs, and....

                                      Lawrence Wagoner
        Hay Method
Quality Checks And Patterns

                 PROFILING
   Jobs with essentially the same AC
    and PS points tend to have an
    administrative/action orientation.
   The profile is determined by
    identifying the step difference
    between PS and AC....

                                      Lawrence Wagoner
          Hay Method
  Quality Checks And Patterns
The step difference is determined
By locating the PS points on the
Step value guide and counting up
Or down until you have located
the AC points. The number of
Steps taken in this
procedure establishes
the step difference. The
Direction (up +, down -) defines
The nature of the difference.
                                    Lawrence Wagoner
            Hay Method
    Quality Checks And Patterns
                     PROFILING
   To convert all of this data into a profile turn to
    page 287 in your text and find the PS
    percentage, identified in the sample problem,
    in the left hand column (33%) and move
    across that row until you find the KH points in
    the first row that correspond with those
    determined in your sample problem (230)....
    The number found at this intersection (87)
    becomes profiling CONTINUED...
                                              Lawrence Wagoner
        Hay Method
Quality Checks And Patterns
                    PROFILING
   The number you locate in the left hand
    column of the profile table (figure 9-11b) and
    match up with the appropriate step level (1
    down) located on the horizontal axis.

   The resulting set of numbers is the job
    profile (38 33 29). This profile defines the
    percentage of points assigned to each of
    the three universal factors.
                                            Lawrence Wagoner
        Hay Method
Quality Checks And Patterns

                PROFILING
   All to the job profiles lined up in
    order of point totals will provide
    the organization with a profile
    pattern that further validates the
    evaluation effort.


                                      Lawrence Wagoner
        Hay Method
Quality Checks And Patterns
                  PROFILING
   As a rule, KH points as a percentage of
    the total tends to decrease as job value
    increases.
   PS and AC points as a percentage of the
    total tend to be lowest at the lower valued
    jobs.



                                         Lawrence Wagoner
            Hay Method
    Quality Checks And Patterns
                      PROFILING
   Profile patterns are also indicators of job rank
    within an organization:

                              KH-PS-AC
       General Mgr            41-23-36
       Plant Mgr              44-22-34
       Operations Mgr         56-19-25
       Office Mgr             60-17-23
                                             Lawrence Wagoner

								
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